Tesco profits slump again

Supermarket giant Tesco has this morning reported a 6% fall in group trading annual profit to £3.3bn – the second year in a row it has announced falling profits.

Unveiling its preliminary results for the 52 weeks until 22 February, 2014, it said like-for-like sales also fell by 1.4%

The company also announced a £734m loss of value in its European business, which has been hit by the eurozone crisis. In Europe, group trading profit fell 28% to £238m as sales in the Czech Republic, Hungary, Poland, Slovakia and Turkey, as well as Ireland, all slumped.

Group trading profit was also down 5.6% in Asia to £692m.

Philip Clarke, Tesco’s under-fire chief executive, said: “We are transforming Tesco through a relentless focus on providing the most compelling offer for our customers. Our results today reflect the challenges we face in a trading environment which is changing more rapidly than ever before. We are determined to lead the industry in this period of change.”